Toyota Plans to Introduce Low-cost Hybrid Cars

Summary: In an attempt to compete with Honda’s cheap eco-friendly autos, carmaker giant Toyota said it will focus on creating low-cost hybrid models that will come at a starting price of $20,500, allowing more consumers to buy its products.

Meanwhile, experts believe that Toyota’s new marketing strategy will create a price war against other companies, especially Honda, which manufactures hybrids.

In an attempt to compete with Honda’s cheap eco-friendly autos, carmaker giant Toyota recently announced it will introduced low-cost hybrid models that will come at a starting price of $20,500 which is cheaper than its rival.

According to experts, Toyota’s decision to boost its hybrid market will result to a price war against other manufacturers especially Honda which has been focusing on creating eco-friendly autos that are popular among consumers who have started choosing “green” products for the past couple of years.

Toyota will launch its new version of hybrid cars in the next two years and it will cost 30 percent less than its predecessor Prius, according to the company official who asked for anonymity.

Meanwhile, Toyota said it is also planning to lower the price of Prius to compete with Honda’s cheap eco-friendly cars especially its Insight which cost around 1.90 million yen.

The ongoing economic crisis hit carmakers around the globe including BMW, Chrysler, General Motors, and Ford. But despite the slumping sales of these companies, Honda’s finances remain afloat as more consumers are buying its hybrid cars.

“We already receive over 18,000 orders of second-generation of Insight hybrids since it was officially launched in Japan last month”, according to Honda official.